2003 (7) TMI 5 - SC - Income Tax

Whether the appellant-authority should have been paid the interest on the purchase price which was refunded by the respondents - purchase of the property by the authority u/c XX-C - since technically speaking the appellant was in possession of the property, while setting aside the decision of the Division Bench in so far as it did away with the grant of interest, we reduce the rate of interest from 15% to 7 per cent.

Summary

The Supreme Court judgment dealt with the issue of interest payment on a refunded purchase price in a compulsory property purchase under the Income-tax Act, 1961. The appellant authority was initially granted interest at 15%, but it was reduced to 7.5% due to technical possession issues. The appeals were disposed of with no order as to costs.